UPDATE 2-FTSE 100 bounces back from 7-week low, Rynair advances

* FTSE 100 up 0.6%, FTSE 250 up 0.1%
* Indexes recover after sharp sell-off on Friday
* Worries over coronavirus linger
* Ryanair up after raising profit view

(Adds news items, updates to closing prices)
By Shashwat Awasthi and Muvija M
Feb 3 (Reuters) - London's main share index bounced back
from a seven-week low on Monday, as strong U.S. economic data
kept in check worries about the coronavirus, but gains for
UK-focused midcaps were limited by concerns about the
possibility of Britain having no trade deal in place with the EU
by the end of the year.
On the first trading day after Britain's formal departure
from the European Union, the FTSE 100 .FTSE added 0.6% but the
more domestically exposed FTSE 250 .FTMC rose just 0.1%.
Data showing an unexpected rebound in U.S. factory activity
in January after five consecutive months of contraction offered
some confidence to markets that have been plagued by fears of a
global slowdown and the coronavirus epidemic. The FTSE 100 was also supported by exporters such as spirits
company Diageo DGE.L and HSBC HSBA.L as the pound slipped.
With the European Union and Britain tussling over a
post-Brexit deal on Monday ahead of talks scheduled for March,
the currency weakened as investors grew nervous about the
viability of a smooth trade deal between the two post divorce.
Still, British indexes, like other major global ones, were
in stark contrast to those in China, where stocks plunged in the
first trading session following an extended Lunar New Year
break, as the death toll from the virus outbreak rose to 361 in
the Asian country. "As yet the spread of the virus has not reached epidemic
levels in Europe or the U.S., but we are entering a key period
now and a sharp escalation in cases closer to home would spook
the markets," Markets.com analyst Neil Wilson said.
Though a sharp drop in stock valuations due to the epidemic
has made for a more attractive entry point for some dealers, the
broader impact has been firmly negative.
Both British benchmark indexes shed more than 3% last month
as the outbreak sapped risk appetite.
London-listed shares of Ryanair RYA.L jumped 7% on Monday
after the Irish carrier raised its annual profit forecast,
citing a better-than-expected performance over the holidays.
Shares of blue-chip peer easyJet EZJ.L advanced 3%.
But NMC Health NMC plunged 20% in the same index, although
the reason for the fall was not immediately clear.
The healthcare firm has lost 60% in value after coming under
attack from U.S. shortseller Muddy Waters late last year.
Among midcaps, Future FUTR.L gained 4.1% after the
publisher forecast its full-year results to be materially ahead
of market expectations. Small-cap peer Reach Plc RCH.L also
rose more than 6%.
A notable loser was payments firm Finablr FINF.L , which
gave up almost 8%. Its unit Travelex said on Friday it had
partially restored its UK website, more than a month after a
crippling ransomware attack. Brokerage EFG Hermes also downgraded Finablr, which has lost
more than half its value since the attack in December.